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What do you stand to lose if you file for bankruptcy?

On Behalf of | Aug 16, 2022 | Bankruptcy

Declaring bankruptcy is often the best decision when bills spin out of control. It puts an end to calls from creditors and points the way toward financial stability.

Some are hesitant to declare bankruptcy because they fear losing everything. In truth, filing should not result in the wholesale liquidation of all you own.

What might you lose when filing for bankruptcy?

Certain belongings in bankruptcies are up for grabs. Examples include luxury vehicles, cash and jewelry. Vacation properties remain vulnerable. Losing homes is one of the greatest fears people have when filing. Rest assured, this happens only rarely.

Expect to lose your credit cards. The good news is you no longer have to pay them off. You also may apply for new ones before long.

What might you keep when filing for bankruptcy?

With an advocate by your side, you should be able to maintain control of the majority of your possessions. The aim is for you to keep everything necessary for maintaining your way of life. The car with which you commute and perform daily functions should remain. Anything that factors into your ability to work remains untouchable. For instance, you will not lose a home computer if necessary to conduct business. Should internet access be a need, you will still have that, too.

It is a myth that filing for bankruptcy causes petitioners to leave with nothing. You will be able to stay employed and maintain your current lifestyle. This knowledge should increase your comfort level with moving forward.